Motorola's iRadio Challenges Satellite Radio, Apple (MOT, XMSR, SIRI, AAPL)

Motorola today unwrapped its subscription music service -- iRadio. Subscriptions to the internet-based (not cellular network-based) service will reportedly be in the $8/month range. The specialized bluetooth-enabled Motorola handsets necessary to run the service automatically pause the audio for an incoming call, and can send a wireless signal to the user's home or car stereo. It's part MP3 download device, part super radio -- 435 stations streaming commercial free. (Here's the MOT press release.)

One of the phones that will run iRadio is the forthcoming Rokr E2, which Alan Reiter notes, 'will not include iTunes, like the existing Motorola ROKR E1. The E2 will, supposedly, store at least 70 hours of music via flash memory and a larger memory card could store more audio files.'

What does it mean for the two industries it tackles simultaneously? Reuters reports iRadio will 'put Motorola in competition with XM Satellite Radio and Sirius Satellite Radio which sell radio subscriptions for car and home radios,' and Red Herring adds that Motorola's product will challenge 'the booming market for MP3 players led by Apple’s iPod device and its iTunes music catalog.'